Campaign Finance and Spending

What needs to be funded for a campaign?

• Campaigns include a variety of people• Campaign manager• Staff → Includes a hierarchy from consultants and

speech writers down to volunteers

• Publicity-flyers, bumper stickers, etc.

• Travel

• Elections

• Advertisments

Where does the money come from?

• CANNOT come from foreign donations• Americans abroad can donate

• Personal funding

• Public Financing – “pays the valid expenses of their political campaigns”• Has limitations• Candidate cannot spend more then $10 million minus cost

of living• Limit of $50,000 in personal spending

• Fund consists of donations made on federal tax returns up to $20 million

• Obama turned it down in 2008

$$

• Stephen Colbert on Super PACs

• PAC and Super PAC (Political Action Committees)

• Private Donations• Does not need to be disclosed if under $1,000

Campaign-Finance Laws

• 1971 Congress passed the Federal Election Campaign Act (FECA)• Restricted amount spent in mass media• Limited candidate personal contributions• Taxpayers could choose to donate $1 (now $3) on their

federal tax return for public funding, used first in 1976

• FECA amended in 1974• Created the Federal Election Commissions (FEC)• Candidates must agree to spending limit – overturned in

1976• Must file reports with FEC that lists contributions and

how money was spent• $25,000 max for individuals, $50,000 for groups

Soft Money

• Individuals and corporations can donate to political parties• Parties then host functions, pay for ads, fund

grassroots organizations

• By definition: harder to trace connections betw. donor and candidate

Major Changes and Reforms

• McCain/Feingold 2002 - bipartisan• Addressed “soft money” – must adhere to limits• Use of issue advocacy ads w/in 30 or 60 days of

elections• Overturned by Citizens United v Federal Election

Commission (FEC)

• Citizens United v FEC• Gave corporations the same First Amendment rights as

citizens• PACs and Super PACS can air campaign ads within 30

days of the election• Includes a number of rules and limitations• Donors are largely undisclosed

Changes Contd.• Obama was the first to use the internet and minor

($5) donations in the 2008 election• Similar to the text campaign used by the Red Cross for

natural disaster relief

Intro to Citizens United

• News Report on Citizens United

• Should we be alarmed?

PAC and Super PAC

• Mitt Romney...

Americans for a better tomorrow, tomorrow

Super PAC Spending

• Super Pacs...note their innocuous titles...

Today’s Agenda!• We will host our own debate about Citizens United to

clarify the two sides of the argument

• Questions to consider while reading your side• Focus on the constitutional rights afforded to

corporations by the case• How does this case change the campaigns of today’s

politicians?• What constitutional issues are being discussed?• How does this affect your campaign?

Debate

• With your group spend 5 minutes electing 2 people to present an opening statement about why your side is correct. Also elect 2 students for a closing argument who will take notes and finish up the debate

• All students must participate once

‘Ticket out the door’

• How has Citizens United changed the face of campaign finance and the election process? Do you agree or disagree with the decision?

• HW: Write your “reaction” to a SuperPAC offering to donate $5 million to your campaign in the form of both ground support and attack ads. This SuperPAC is either more liberal or conservative than your original platform.